DALLAS, Texas, Feb. 1 /PRNewswire/ -- In a ruling issued Friday, Federal Bankruptcy Judge Steven A. Felsenthal, U.S. Bankruptcy Court, Northern District of Texas, Dallas, stated his intent to confirm National Gypsum Company's proposed plan of reorganization that would permit the Company to emerge from bankruptcy.
In its ruling, the Court indicated that current asbestos bodily injury claimants would be channelled to a settlement trust (consisting of historical insurance policies, stock of The Austin Company and cash) and permanently enjoined from making any claims against the new National Gypsum Company. The Court also stated that it would channel future bodily injury claims to the trust. The Court also approved plan provisions that all outstanding property damage claims will be settled for approximately $137 million.
The Court has scheduled a hearing for Feb. 24, 1993, to consider the order confirming the Company's plan and additional issues relative to the confirmation.
"The Court's ruling is a major step toward permitting the Company to emerge soon from its Chapter 11 bankruptcy proceedings," said Peter C. Browning, chairman and chief executive officer. We anticipate meeting all the requirements for an effective date by mid-year," Browning added.
National Gypsum Company filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Oct. 28, 1990. The Company is the nation's second largest producer of gypsum wallboard and related products.
-0- 2/1/93
/CONTACT: Allan V. Cecil, V.P.-Corporate Communications and Investor Relations, National Gypsum Company, 704-365-7227/

CO: National Gypsum Company ST: Texas, North Carolina IN: CST SU:

SB -- CH015 -- 1528 02/01/93 16:47 EST

COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.